Priceline said Q3 revenue grew 17.4% to $1.7 billion. The firm said global bookings in Q3 rose 41%, well ahead of expectations.

"International bookings growth was driven by strong hotel supply growth as well as solid results at Rentalcars.com," said Raymond James analyst Aaron Kessler, who on Friday raised his price target on the stock to $735 per share from $670.

In Q4, Priceline said it expects international bookings to grow 32%.

"The key take-away for Q3 may, in fact, be that the rising tide of transition from offline to online travel bookings internationally is strong enough to support material growth for multiple players," Piper Jaffray analyst Michael Olson said in a report. "Priceline continues to be a share taker in international online travel, something that was in question following Expedia's strong Q3 results."

"(In Q3), Priceline removed investor concerns that its European business is being dramatically impacted by Expedia's growth gains, as the company said they are continuing to grow faster than their competition in the major markets," he said. "We estimate that Priceline grew faster than Expedia internationally (off of a much larger base)."

For the September quarter, Priceline reported a per-share profit of $12.40 vs. analyst views of $11.81. Earnings per share were up 25% from the year-ago period.

"Commentary on stabilization in Priceline's European business (for now at least) was an incremental positive," he said. "Macro risk in Europe is unlikely to abate any time soon, but management's constructive comments around stabilizing trends and the company's robust international gross bookings guidance highlight the resiliency of its business model, in our view."

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